ParcelForce to make drivers self-employed
PARCELFORCE, the loss-making arm of Consignia, the postal group, is to try to make a quarter of its drivers self-employed in an effort to cut costs and boost productivity.
Under the scheme, which has the reluctant backing of the Communication Workers Union (CWU), drivers will be offered the option of giving up permanent employment and an average salary of Pounds 15,500, for a new contract based on the number of parcels they deliver.
Drivers will be asked for an initial Pounds 1,000 down payment to cover the lease of a delivery uniform and Parcelforce van.
The division wants to put the first of about 1,500 “owner-drivers” on the road by Christmas.
Parcelforce, which competes with rivals such as TNT, Securicor, UPS and White Arrow, has never made profits and last year lost Pounds 44 million. The move is part of a wider initiative, announced last month, aimed at cutting Pounds 1.2 billion off Consignia’s cost base. Up to 15,000 Post Office jobs could also go under the plans.
A spokesman for Consignia said: “Parcelforce operates in a very competitive environment. It is essential that it operates with the lowest possible costs. It is essential for us, but it will also be good for employees.”
Terry Pullinger, the assistant secretary at the CWU, said: “This is not an ideal position but it is a question of reality and doing what we have to do. Because we have been in a nationalised industry we may have been a bit insular. It is time to think outside that box.”
Owner-drivers will still have union recognition rights and Consignia has pledged that the majority of drivers will be in full-time employment.
(c) Times Newspapers Ltd, 2001
